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Pirelli Egypt plans to expand production capacity - Daily News Egypt

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Pirelli Egypt plans to expand production capacity

Studies of company’s new expansion to be finished in 2015, construction works will take 24 months

Younes Alawy, Executive and Managing Director of Pirelli Egypt (DNE Photo)
Younes Alawy, Executive and Managing Director of Pirelli Egypt
(DNE Photo)

Pirelli intends to pump new investments into Egypt according to a Memorandum of Understanding (MoU) signed between the Egyptian government and the mother company in Italy, Younes Alawy, Executive and Managing Director of Pirelli Egypt says.

Alawy told Daily News Egypt it is expected the new investments are worth $100m, in order to increase the production capacity of the factory to more than 1m tyres for passenger cars, trucks and buses. He clarified that Pirelli’s production volume of tyres amounts to 800,000 pieces, more than half of which are for exports, while the rest are sold in the local market.

How do you view the current economic situation?

The Egyptian economy has been moving slowly but surely. We are very confident that it will be strengthening in the coming period.


How do you evaluate the regulation of foreign investment in Egypt? Do you think it benefits the investor or not?

Indeed, it’s in the benefit of the investors. The new draft law will work on improving the investment climate in Egypt, which makes the investors think of Egypt in the first place as an investment destination, instead of going anywhere else.


What is the volume of Pirelli’s turnover in Egypt?

Pirelli Egypt’s factory produces around 750,000 truck tyres a year.


Is there any intention to raise Pirelli’s investments in the Egyptian market, and at what volume?

Egypt has always been lucky when it comes to the Italian investor thoughts. Pirelli has invested EGP 1.8bn since it took control of the operations in Egypt, of which EGP 700m has been since 2008 alone. We consider the Egyptian market an important and strategic market, and we will continue investing in the country. The size of the investment will depend on market opportunities and growth.

We have different strategic projects in plan, such as, and not limited to: a premium professional retail network; the introduction of the latest technology in tyre monitoring applications; a tyre academy for commercial and operators; partnering in projects to develop new mobility solutions.


How do you value the economic relationship between Egypt and Italy during the past days and your expectations for future projects between the two countries?

Italy and Egypt both have a long relationship. And that’s why we were eager to sign an MoU [Memorandum of Understanding] with an investment of $107m in the next three years. If the project is approved, we will be expanding the factory and services that we provide to the Egyptian market; this includes more R&D investment, after sales services and product development


What is your opinion on the government’s intention to start locally manufacturing passenger cars?

Whatever helps the economy is to the benefit of all the investors in Egypt.


How many employees work at Pirelli Egypt?

We provide job opportunities for more than 2,000 people.


How does Pirelli view its responsibility toward the Egyptian community? Tell us more about the school that is developed by Pirelli; how is the project doing?

Pirelli always has the initiative in community development, sustainability and CSR programmes around the globe, such as: the Peace campaign in Italy, and Safety.

In Egypt we have a wide scope of local community initiatives across the following:

-Education support:        Supporting Al-Amerya Industrial Secondary school (offering a better learning environment, preparing qualified youth for profession)

-Tire scrap recycling:       Reusing scrap tires in renovations of work spaces & gardens

-Sporting support:           Building a youth centre in E-Bieda village Intercampus with InterMilan

What is the weight of the R&D in Pirelli worldwide and locally?

Pirelli R&D can count on more than 40 years of experience in the premium segment, as well as its headquarters in Milan and 10 regional centres, 1,400 engineers and numerous ‚Äėopen innovation‚Äô projects with university research centres and car makers. We invest approximately 3.2% of the group‚Äôs sales in research and development and 7.4% of the revenues produced by the premium segment. We also have global partnerships with the most prestigious car makers to meet the more demanding requirements in terms of performance, safety and product customisation, which are key for the replacement market development.

Why are Pirelli tyres well known for being the most innovative technology? Is it for both truck and car BU?

Pirelli invests in developing the tyre technology and excels in innovation. Innovation specifically requires more focus, dedication, and hard work, so you will always be on the top. Being the official tyre supplier for F1 helped us a lot in developing our products.

We also have a Car Business Unit, as, in line with our excellence and ultra-high-performance targets, our technology has always pioneered innovation. Our Open Innovation model focuses on: partnership with the major Car Makers for Original Equipment supply; leadership in innovative and green materials; state-of-the-art modelling; development of flexible and efficient manufacturing processes; and considerable investments in Research & Development.

There is our Truck Business Unit. We have a long vision strategy and good sense of the consumer needs. We are the first to develop in the truck tyre structure and were awarded years ago a patent for zero belt technology in truck tyre manufacturing, which was a shift in the tyre industry that was followed by every manufacturer.

Another development was the Cyber fleet programme, which is an advanced monitoring system applied to truck fleets allows significant performance improvements in economic and environmental terms, by which you can identify the truck location, tyre pressure and speed of the truck. This changed the way the a fleet perceive tyres, from a cost burden to a tyre service solution

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